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Exelixis (EXEL) Misses on Q3 Earnings & Revenues, Tweaks View
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Exelixis, Inc. (EXEL - Free Report) reported earnings of 12 cents in the third quarter, which missed the Zacks Consensus Estimate of 19 cents. In the year-ago quarter, the company had reported a loss of 10 cents per share.
Excluding stock-based compensation expense, earning per share came in at 20 cents, up from 4 cents in the year-ago quarter.
Net revenues came in at $328.4 million, which increased from $231 million reported in the year-ago quarter but missed the Zacks Consensus Estimate of $366 million.
Exelixis’ shares have gained 9% in the year so far against the industry’s decline of 8.2%.
Image Source: Zacks Investment Research
Quarter in Detail
Net product revenues came in at $263.1 million, up from $168.6 million reported in the year-ago quarter. The upside was primarily led by an increase in sales volume that was primarily driven by the strong uptake for the combination therapy of Cabometyx (cabozantinib tablets) and Bristol-Myers’ (BMY - Free Report) Opdivo (nivolumab) following FDA approval in January.
Cabometyx generated revenues of $259.8 million. Cabometyx is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC). Cometriq (cabozantinib capsules) for the treatment of medullary thyroid cancer generated $3.3 million in net product revenues. Exelixis earned $27.1 million in royalty revenues.
Collaboration revenues, comprising license revenues and collaboration services revenues, were $15.6 million in the quarter compared with $29.3 million in the year-ago quarter.
In the reported quarter, research and development expenses decreased to $163.4 million from the year-ago quarter’s $176.8 million due to a decline in clinical trial costs. Selling, general and administrative expenses were $101.6 million, up from $88.2 million.
Pipeline Update
In September, Exelixis obtained FDA approval for Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with locally advanced or metastatic differentiated thyroid cancer (DTC) that has progressed following prior vascular endothelial growth factor receptor-targeted therapy and who are RAI-refractory or ineligible.
Exelixis also expanded its discovery and licensing collaboration agreement with Invenra to include an additional 20 oncology targets.
In October, Exelixis’ partner Aurigene exercised its exclusive option to in-license XL114 (formerly AUR104) under their July 2019 collaboration, option and license agreement. Consequently, Exelixis assumed responsibility for all subsequent clinical development, manufacturing and commercialization of the compound, which inhibits the CARD11-BCL10-MALT1 signaling pathway that promotes lymphocyte survival and proliferation. Following the FDA’s recent acceptance of Exelixis’ IND, the company plans to initiate a phase I study of XL114 as a monotherapy in patients with non-Hodgkin’s lymphoma.
2021 Guidance Updated
Revenues are now projected at $1,300-$1,350 million (previous projection: $1,300-$1,400 million) while product revenues are estimated in the range of $1,050-$1,100 million (previous projection: $1,050-$1,150 million).
Exelixis’ third-quarter results were disappointing with a miss on both counts. The approval of Cabometyx in combination with immuno-oncology drug, Opdivo, for advanced RCC has boosted sales. However, competition is stiff in this space.
Merck’s (MRK - Free Report) Keytruda, in combination with Pfizer’s (PFE - Free Report) Inlyta, is also indicated for the first-line treatment of patients with advanced RCC.
Exelixis is looking to build a differentiated next-generation pipeline in oncology through strategic collaborations. The successful development of additional candidates will diversify its revenue base and reduce dependence on Cabometyx.
Image: Bigstock
Exelixis (EXEL) Misses on Q3 Earnings & Revenues, Tweaks View
Exelixis, Inc. (EXEL - Free Report) reported earnings of 12 cents in the third quarter, which missed the Zacks Consensus Estimate of 19 cents. In the year-ago quarter, the company had reported a loss of 10 cents per share.
Excluding stock-based compensation expense, earning per share came in at 20 cents, up from 4 cents in the year-ago quarter.
Net revenues came in at $328.4 million, which increased from $231 million reported in the year-ago quarter but missed the Zacks Consensus Estimate of $366 million.
Exelixis’ shares have gained 9% in the year so far against the industry’s decline of 8.2%.
Quarter in Detail
Net product revenues came in at $263.1 million, up from $168.6 million reported in the year-ago quarter. The upside was primarily led by an increase in sales volume that was primarily driven by the strong uptake for the combination therapy of Cabometyx (cabozantinib tablets) and Bristol-Myers’ (BMY - Free Report) Opdivo (nivolumab) following FDA approval in January.
Cabometyx generated revenues of $259.8 million. Cabometyx is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC). Cometriq (cabozantinib capsules) for the treatment of medullary thyroid cancer generated $3.3 million in net product revenues. Exelixis earned $27.1 million in royalty revenues.
Collaboration revenues, comprising license revenues and collaboration services revenues, were $15.6 million in the quarter compared with $29.3 million in the year-ago quarter.
In the reported quarter, research and development expenses decreased to $163.4 million from the year-ago quarter’s $176.8 million due to a decline in clinical trial costs. Selling, general and administrative expenses were $101.6 million, up from $88.2 million.
Pipeline Update
In September, Exelixis obtained FDA approval for Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with locally advanced or metastatic differentiated thyroid cancer (DTC) that has progressed following prior vascular endothelial growth factor receptor-targeted therapy and who are RAI-refractory or ineligible.
Exelixis also expanded its discovery and licensing collaboration agreement with Invenra to include an additional 20 oncology targets.
In October, Exelixis’ partner Aurigene exercised its exclusive option to in-license XL114 (formerly AUR104) under their July 2019 collaboration, option and license agreement. Consequently, Exelixis assumed responsibility for all subsequent clinical development, manufacturing and commercialization of the compound, which inhibits the CARD11-BCL10-MALT1 signaling pathway that promotes lymphocyte survival and proliferation. Following the FDA’s recent acceptance of Exelixis’ IND, the company plans to initiate a phase I study of XL114 as a monotherapy in patients with non-Hodgkin’s lymphoma.
2021 Guidance Updated
Revenues are now projected at $1,300-$1,350 million (previous projection: $1,300-$1,400 million) while product revenues are estimated in the range of $1,050-$1,100 million (previous projection: $1,050-$1,150 million).
Exelixis, Inc. Price, Consensus and EPS Surprise
Exelixis, Inc. price-consensus-eps-surprise-chart | Exelixis, Inc. Quote
Our Take
Exelixis’ third-quarter results were disappointing with a miss on both counts. The approval of Cabometyx in combination with immuno-oncology drug, Opdivo, for advanced RCC has boosted sales. However, competition is stiff in this space.
Merck’s (MRK - Free Report) Keytruda, in combination with Pfizer’s (PFE - Free Report) Inlyta, is also indicated for the first-line treatment of patients with advanced RCC.
Exelixis is looking to build a differentiated next-generation pipeline in oncology through strategic collaborations. The successful development of additional candidates will diversify its revenue base and reduce dependence on Cabometyx.
Exelixis currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.